Potential analysis
Are you the owner of a property and looking to unlock its full potential? Our property experts will assess what attractive opportunities a new build or renovation might offer.
Don’t miss out on your property’s potential – Increase its value!
Old properties, new opportunities: Many Swiss single-family and multi-family homes have solid structures, making them ideal for continued use. Often, these older houses come with generous outdoor spaces that enhance their living quality.
While preserving existing structures is valuable, property owners should consider whether they are foregoing financial benefits in the long run. In recent years, many municipalities have adjusted their building and zoning regulations, significantly increasing the utilization coefficient.
This coefficient defines the maximum permissible living space relative to the property size. A higher coefficient means more building space is allowed on a given plot. Often, this means that a property currently occupied by an older single-family home with a large garden could accommodate a small multi-family house, generating significant rental income or proceeds from apartment sales.
Another way to create additional living space is to extend the existing structure by adding extra floors or an annex, avoiding the need for demolition.
Determining value potential
For many owners of older properties, it makes sense to obtain a non-binding evaluation of their plot’s potential before considering a sale. Many older buildings are currently underutilized.
Factors
The question of how much living space could be developed on a given plot is answered through a potential analysis. However, it’s not just about quantity—more living space, more volume, more floors—but also about quality, such as flexible floor plans or maximizing views and sunlight throughout different seasons.
Opportunities
A key point: The existing property does not necessarily have to be replaced with a new building. In many cases, an additional floor can be added, or a modern extension can be built, significantly increasing the property’s value.
Added value
Regardless of how the best use of a plot is determined, adjusting the living space to align with current building and zoning regulations — whether through new construction or expansion — often results in significant added value. This benefits not only the property owner but also future residents.
Example of a potential analysis
250 m²
Current living space
Example: The current living space on the property is 250 m²
600 m²
Utilization coefficient
The utilization coefficient allows for 600 m² of living space
If the available space were utilized for five apartments of 120 m² each, the theoretical revenue at an assumed price of CHF 14,000 per m² of developed living space would be calculated as follows:
Sale of 5 apartments at CHF 1.68 million each
+10 parking spaces at CHF 40,000 each
= Total revenue: CHF 8.8 million
From this theoretical revenue, planning, construction, and marketing costs for the new multi-family house are deducted, leading to an estimated profit of CHF 2.5 million.
If this amount exceeds the market value of the existing property in need of renovation (assumed to be CHF 1.5 million in this case), a professional feasibility study is recommended.
&w=1920&q=75)
